Torsten Bell reappointment welcomed as pension reforms gather pace

Torsten Bell’s reappointment to his dual role at the Department for Work and Pensions and HM Treasury has been broadly welcomed by the pensions industry.

However, experts have reiterated the need for stability and a sharper focus on delivering reforms.

Bell will remain pensions minister following the government reshuffle confirmed on 22 July, avoiding what former pensions minister Steve Webb described as “a third new pensions minister in barely two years”.

Webb, now a partner at consultancy LCP, said frequent ministerial changes created “uncertainty and instability” for the industry.

He added: “Instead, we have seen the reappointment of someone who has clearly engaged with the post and sought to bring a clear strategic direction to pensions policy.”

Webb said the decision should provide momentum behind the government’s pensions roadmap, including the development of retirement collective defined contribution (CDC) schemes.

He also predicted that a new Pensions Bill could be introduced in 2027, following the Pensions Commission’s report early next year, to implement its central recommendations.

“It is to be hoped that we are seeing a new and welcome era of certainty and continuity in pensions policy,” Webb said.

David Brooks, head of policy at pensions consultancy Broadstone, also welcomed the decision, given the scale of the reforms already under way.

“There is a big opportunity – through the expansion of CDC, unlocking surplus capital and delivering pensions dashboards, to name just a few – to make a tangible difference to workers, savers, providers and UK plc,” he said.

Brooks added that pension policy required “focus and consistency” to ensure reforms produced a sustainable and trusted retirement savings system.

Torsten Bell named new pensions minister

Calum Cooper, head of pension policy innovation at Hymans Robertson, said Bell’s reappointment offered an opportunity to maintain momentum across areas including pension adequacy, retirement outcomes, productive finance and dashboards.

“The priority now should be turning proposals into tangible improvements for savers,” he said.

Cooper called for the outstanding automatic enrolment reforms to be implemented and for the government to establish a long-term path towards higher contribution levels.

“Participation alone is no longer enough. We need a stronger focus on outcomes,” he said.

He added that pension policy should better reflect modern working patterns, ensuring the self-employed, lower earners, carers and people with multiple jobs were not left behind.

Cooper also urged the government to consider the role of housing in retirement adequacy and to make better use of the UK’s £3trn of pension savings.

“Better retirement outcomes and stronger economic growth should go hand in hand,” he said.

However, Adam Cole, retirement specialist at Quilter, said the industry would not necessarily support every aspect of Bell’s policy agenda.

Cole said some of Bell’s previous proposals on investment, consolidation, taxation and retirement outcomes had raised concerns, particularly where they could restrict consumer choice or affect how savers accessed their pensions.

Nevertheless, he described retaining Bell as positive “from a stability point of view”.

“The real test now will be whether continuity in personnel is matched by continuity in policy,” Cole said.

“The pensions sector needs a period of stable and predictable reform rather than constant speculation about the next change.”